I was looking at stock prices and dividends the other day, and wondered this. Large companies whose shares I was looking at had dividends of the order of ~1-2%, such as 0.65%, or 1.2% or some such. My savings account provides me with an annual return of 4% as interest.
Why would one want to purchase stocks of such companies over the long term? Wouldn't they be losing money, even though technically they are getting paid every year? I ask this as some people said they consider dividends as a secondary income. One guy on Quora said he's getting GBP 1M annually from an investment portfolio of GBP 20M. How he was doing that, I have no idea.
Why not just invest in options instead for higher potential profits? I ask this because the portal I use for trading does not have negative option prices.